When works contract is sub-contracted there is only one taxable event and between main contractors and sub-contractor only one is liable to pay tax on the goods incorporated in the works contract. Herebelow this issue is discussed in the light of decision of Supreme Court and P&H High Court in the context of VAT provisions especially under Punjab VAT Act, 2005.

Definition of works contract: As per Section 2 (za) of Punjab Value Added Tax Act “works contract” includes any agreement for carrying out, for cash, deferred payment or other valuable consideration, building ,construction, manufacturing, processing, fabrication, erection, installation, fitting out, improvement, modification, repairs or commissioning of any movable or immovable property

WARNING

Nobody is permitted to copy or publish the articles existing on this blog on any website or on any other media without my express permission.

Total Pageviews

Disclaimer

No one is responsible for any claims if somebody finds that the information/opinions provided in this blog is incorrect and the blog is meant only to share knowledge and exchange views in a meaningful manner.